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Marathon Digital Holdings, one of the US's largest publicly traded Bitcoin miners, announced plans to raise $250 million through a private offering of convertible senior notes. The funds will be used primarily to expand Marathon's Bitcoin holdings.
BREAKING: 🇺🇸 MARATHON DIGITAL HOLDINGS TO RAISE $250 MILLION TO BUY MORE #BITCOIN pic.twitter.com/6NKbfyDPvh
— Bitcoin Magazine (@BitcoinMagazine) August 12, 2024The Nevada-based company operates a fleet of miners, producing around 579 bitcoins in July. Marathon's balance sheet contains over 20,000 Bitcoin worth over $1.1 billion.
Earlier in July, Marathon bought $100 million worth of Bitcoin on the open market as part of its long-term "hodl" strategy. The company said it will hold all newly mined Bitcoin as reserves.
This latest move to raise capital for direct Bitcoin purchases mirrors the strategy pioneered by MicroStrategy. Since 2020, MicroStrategy has issued debt and sold shares to accumulate more than 220000 Bitcoin in corporate treasury.Â
Marathon aims to position itself atop the nascent but rapidly evolving Bitcoin mining and services industry by aggressively expanding its Bitcoin stack.Â
This fundraising approach allows public equity investors indirect exposure to Bitcoin. With growing adoption from firms like Microstrategy, Semler Scientific, and Metaplanet, bitcoin is emerging as a corporate treasury asset class.